- Retailer Bonmarche warned of deeper losses as 'significantly' weaker trading since the beginning March had offset improved performance in the previous months.

The retailer estimated that the underlying the profit before tax loss would be between £5.0m and £6.0m, compared with guidance in December for profit before tax loss in the range of breakeven to a loss of £4.0m.

The warning of deeper losses comes as the retailer had seen sales improve since Christmas despite the additional discounting, but trading since the beginning of March had been 'significantly weaker,' reversing sales gains made in the previous months.

The company said the recent downturn in sales was a consequence of the demand for transitional ranges, between winter and spring, which had been satisfied during January and February.

Sales of spring season stock benefitted from the spell of warm weather in late February, but this was not yet a large enough part of the sales mix to compensate for the lower demand for transitional stock, the company said.

'Nevertheless, on the basis of this positive early reaction to the spring product, our expectation for FY20 remains unchanged,' Bonmarche said.

'Other than this short term borrowing requirement at the year end, the Group expects to continue to operate with a positive net cash balance during 2020.'

At 9:47am: [LON:BON] Bonmarche Holdings share price was -8p at 29p

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